NVT stands for Network Value-to-Transactions and is calculated by dividing Network value with Daily transaction volumes. It was introduced by Willy Woo in 2017.

NVT, for cryptocurrencies, can be considered as equivalent to Price to Earnings (P/E) ratio that is used to calculate equities’ valuations. NVT implies whether Blockchain network or cryptocurrencies overvalued or not. If the value of a Blockchain network is too high and it is not substantiated by proportionate amount of transactions or coins exchange, it indicates a potential pricing bubble that will be corrected soon.